Glossary · UK

What is General Investment Account?

A taxable investment account with no annual contribution limit, used once tax-free allowances such as ISAs and pensions are exhausted.

Full Definition

A general investment account (GIA) is a standard, taxable account for holding funds, shares and other investments. Unlike an ISA or pension it offers no tax shelter, but it also has no contribution limit, so it is commonly used once the GBP 20,000 ISA allowance and the GBP 60,000 pension annual allowance have been used up. Inside a GIA you are liable for tax on returns: dividends above the GBP 500 dividend allowance are taxed at 10.75%, 35.75% or 39.35% by band, and gains above the GBP 3,000 capital gains tax annual exempt amount are taxed at 18% or 24%. Interest may also be taxable. Because every disposal can trigger CGT, good record-keeping of purchase costs is essential. A common strategy is 'Bed and ISA', moving GIA holdings into an ISA each year to shelter future growth. GIAs suit investors who have maxed out tax-efficient wrappers.